11

1. ABC Company purchases for resale 1,000 GPS units for $78 each. At year end, the replacement cost is $80 per unit, the estimated selling price is $94 per unit, the disposal cost is $9 per unit, and the estimated markup is $12 per unit. If ABC uses LCM costing by item, at what amount will the GPS units be reported on the balance sheet?
2. $78,000
3. $80,000
4. $85,000
5. $79,000
6. $73,000

2 points  

QUESTION 12

1. Apogee Group purchases for resale 2,000 calculators for $16 each. At year end, the replacement cost is $15 each, the estimated selling price, $21, the disposal cost, $2, and the estimated markup, $4. If Apogee uses LCM costing by item, at what amount will the calculators be reported on the balance sheet?
2. $32,000
3. $38,000
4. $34,000
5. $30,000
6. $42,000

2 points  

QUESTION 13

1. ABC Company purchases for resale 1,000 GPS units for $78 each. At year end, the replacement cost is $80 per unit, the estimated selling price is $94 per unit, the disposal cost is $9 per unit, and the estimated markup is $12 per unit. If ABC uses LCM costing, on a per-unit basis, what is the market?
2. $78
3. $79
4. $80
5. $73
6. $85

2 points  

QUESTION 14

1. UpCo's inventory data is as follows:
2.  
3. Cases on hand
4. Cost per case
5. Market per case
6. Garden Supplies
7.  
8.  
9.  
10. Snail Bait
11. 35
12. $80
13. $75
14. Isotox
15. 12
16.  20
17.  23
18. Shovels
19. 20
20. 100
21.  99
22. Hardware
23.  
24.  
25.  
26. Screws
27. 20
28. $80
29. $96
30. Brackets
31.  2
32.  35
33.  31
34. Nails
35.  8
36.  12
37.  12
38. Paint
39.  
40.  
41.  
42. Enamel -1 gal.
43. 22
44. $120
45. $118
46. Spray Cans
47. 15
48.  45
49.   54
50. Misc. Brushes
51.  4
52.  30
53.   38
54. 
    
55. Calculate LCM by group:
56. $10,241
57. $10,517
58. $10,082
59. $9,994
60. $10,378

2 points  

QUESTION 15

1. What is the journal entry to record a permanent decline from a total inventory cost of $25,000 that, under LCM costing, is valued at $24,950?
2. debit Inventory; credit Loss on Inventory Write-Down
3. debit Cost of Goods Sold; credit Inventory
4. debit Loss on Inventory Writedown; credit Inventory
5. debit Inventory; credit Cost of Goods Sold
6. debit Allowance to Reduce Inventory to Market; credit Cost of Goods Sold

2 points  

QUESTION 16

1. ACME Company purchases for resale 1,000 widgets for $82 each. At year end, the replacement cost is $80 per widget, the estimated selling price is $94 per widget, the disposal cost is $9 per widget, and the estimated markup is $12 per widget. If ACME uses LCM costing by item, at what amount will the widgets be reported on the balance sheet?
2. $73,000
3. $85,000
4. $80,000
5. $81,000
6. $82,000

2 points  

QUESTION 17

1. ABC Company purchases for resale 1,000 GPS units for $78 each. At year end, the replacement cost is $80 per unit, the estimated selling price is $94 per unit, the disposal cost is $9 per unit, and the estimated markup is $12 per unit. If ABC uses LCM costing, on a per-unit basis, what is the floor?
2. $78
3. $79
4. $73
5. $85
6. $80

2 points  

QUESTION 18

1. ABC Company purchases for resale 1,000 GPS units for $78 each. At year end, the replacement cost is $80 per unit, the estimated selling price is $94 per unit, the disposal cost is $9 per unit, and the estimated markup is $12 per unit. If ABC uses LCM costing, on a per-unit basis, what is the ceiling?
2. $94
3. $85
4. $80
5. $78
6. $73

2 points  

QUESTION 19

1. ACME Company purchases for resale 1,000 widgets for $95 each. At year end, the replacement cost is $109 per widget, the estimated selling price is $125 per widget, the disposal cost is $18 per widget, and the estimated markup is $22 per widget. If ACME uses LCM costing by item, at what amount will the widgets be reported on the balance sheet?
2. $101,000
3. $109,000
4. $107,000
5. $95,000
6. $85,000

2 points  

QUESTION 20

1. Apogee Group purchases for resale 2,000 calculators for $16 each. At year end, the replacement cost is $15 each, the estimated selling price, $21, the disposal cost, $2, and the estimated markup, $4. If Apogee uses LCM costing, on a per-unit basis, what is the market?
2. $16
3. $21
4. $17
5. $19
6. $15

2 points  

QUESTION 21

1. Apogee Group purchases for resale 2,000 calculators for $16 each. At year end, the replacement cost is $15 each, the estimated selling price, $21, the disposal cost, $2, and the estimated markup, $4. If Apogee uses LCM costing, on a per-unit basis, what is the ceiling?
2. $16
3. $21
4. $15
5. $17
6. $19

2 points  

QUESTION 22

1. If, after recording a loss, the inventory recovers some of its value, the LCM rule does not permit the company to recognize the recovery unless the allowance account was used in the original writedown entry.
2.  True
3.  False

2 points  

QUESTION 23

1. What is the journal entry to record a permanent decline from a total inventory cost of $25,000 that, under LCM costing, is valued at $15,000?
2. debit Allowance to Reduce Inventory to Market; credit Cost of Goods Sold
3. debit Cost of Goods Sold; credit Loss io Inventory Write-Down
4. debit Loss on Inventory Write-Down; credit Allowance to Reduce Inventory to Market
5. debit Loss on Inventory Write-Down; credit Cost of Goods Sold
6. debit Allowance to Reduce Inventory to Market; credit Loss on Inventory Write-Down